Sheet Metal Workers International Association, Local Union No. 223 v. National Labor Relations Board

498 F.2d 687, 162 U.S. App. D.C. 145, 86 L.R.R.M. (BNA) 2308, 1974 U.S. App. LEXIS 8693
CourtCourt of Appeals for the D.C. Circuit
DecidedMay 10, 1974
Docket72-1787
StatusPublished
Cited by16 cases

This text of 498 F.2d 687 (Sheet Metal Workers International Association, Local Union No. 223 v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sheet Metal Workers International Association, Local Union No. 223 v. National Labor Relations Board, 498 F.2d 687, 162 U.S. App. D.C. 145, 86 L.R.R.M. (BNA) 2308, 1974 U.S. App. LEXIS 8693 (D.C. Cir. 1974).

Opinion

WILKEY, Circuit Judge:

This is a petition for review of an order of the National Labor Relations Board instructing the petitioner, Sheet Metal Workers’ Local 223 (Local 223), to cease and desist from maintaining a labor contract clause that the Board found violative of section 8(e) of the National Labor Relations Act (NLRA). 1 We have concluded that the trial examiner and the NLRB failed to resolve or adequately to consider factors that are central to the evaluation of any labor-management agreement under section 8(e). Therefore, the record compiled in this proceeding cannot support the Board’s finding of an 8(e) violation and its corrective order.

498 F.2d — 44

I. BASIS FOR THE CONTROVERSY

At issue here are provisions of the Standard Form of Union Agreement signed by Local 223 and Gelfand Roofing Company (Gelfand), a roofing contractor and a charging party in the Board proceedings. The same agreement governs relations between Local 223 and the Florida East Coast Sheet Metal Contractors Association, a multiemployer bargaining association and an intervenor below.

The provisions in controversy, article II, section 2 and article VIII, section 2, 2 are fairly common union standards clauses. On their face, these clauses seem designed to remove the economic incentive the employer (Gelfand) might otherwise have to deprive Local 223 members of work on its construction projects by subcontracting out sheet metal work or purchasing prefabricated sheet metal items at less than union rates. 3 However, the trial examiner for the Board found that the provisions *690 “were applied and sought to be enforced by [Local 223] in a manner which violates Section 8(e) of the Act.” 4 The trial examiner made this determination on the basis of a series of fact-findings and legal conclusions summarized below.

First, the trial examiner found that prior to May 1970, when the agreement was signed by Gelfand and Local 223, Gelfand had “no contract with [Local 223] and employed members of the latter only on very rare occasions,” 5 and further, Gelfand then had no facilities or equipment for fabricating the sheet metal items it used on its roofing projects. It had always purchased such items from distributors which were not under contract with any local of the Sheet Metal Workers’ International. As to implementing the contract clauses, the trial examiner further found that in the fall of 1970, after Gelfand had contracted with Local 223, agents of the union informed Gelfand that on its CentexWinston condominium project, it could not use prefabricated sheet metal items, specifically stucco stops and gravel stops, that did not bear union labels. The agents backed their statements with threats of monetary penalties, work stoppages, and grievance filings. Subsequently, Union business manager Wallace Strong solicited and received from Gelfand a check for the difference between the cost of some of the items purchased and the wages Gelfand would have paid had the items been fabricated by union members. The object of Local 223’s conduct, the trial examiner determined, was a secondary one: to boycott goods produced by nonunion employers. On the basis of these findings, the trial examiner concluded that Local 223 had violated section 8(b) (4) (ii) (B) of the NLRA 6 by “threatening, coercing, and restraining . . . Gelfand . to cease using, handling, or otherwise dealing in the products of producers of metal products not bearing a union label . . . . ” 7 Local 223 challenges neither this conclusion as to the union’s specific actions nor the related portion of the Board’s cease and desist order in this court.

With respect to the charge that Local 223 had violated section 8(e), the examiner made the following statement:

Having found and concluded that [Local 223’s] pressure on Gelfand was secondary in character, if [sic] follows that Article II, Section 2, and Article VIII, Section 2, of the contract between [Local 223] and Gelfand, set forth above, were applied and sought to be enforced by [Local 223] in a manner which violates Section 8(e) of the Act. I so find and conclude. Cincinnati Sheet Metal & Roofing Company, 174 NLRB No. 22, enfd. as modified [140 U.S.App.D.C. 83] 433 F.2d 1189 (C.A.D.C.); Cincinnati Sheet Metal Roofing Company, 174 NLRB No. 125, enfd. 425 F.2d 730 (C.A. 6). In both cases the identical contractual provisions involved in the instant ease were found violative of Section 8(e) because they were improperly implemented. 8

Other findings by the trial examiner concerned Local 223’s relations with Union Air Conditioning, Inc. (Union Air) and United Sheet Metal Company (United), both of which are members of the Florida East Coast Sheet Metal Contractors Association and therefore subject to the Standard Form of Union Agreement. The examiner found that agents of Local 223 had pressured Union Air and United to cease buying prefabricated air conditioning filter racks that did not bear union labels. In addition, he determined that the Local had instructed its members who were employed by Union Air *691 and United not to install nonunion label filter racks until their employers had paid the Local the difference between the purchase price of the filter units and the projected cost of fabricating the units at union wage rates. Although the examiner had received evidence on the question of whether filter racks were customarily fabricated by employees of Union Air, United, and other contractors, he made no specific finding on this issue. Rather, he again determined that Local 223’s object was to boycott items manufactured by nonunion employers. Thus, he concluded that Local 223 had violated sections 8(b) (4) (i) and (ii) (B) 9 by its conduct with respect to Union Air and United. 10 Since the issue was not before him, the trial examiner did not decide whether Local 223 had violated section 8(e) of the NLRA in its contractual relations with United and Union Air.

Relying on the trial examiner’s findings, with some modifications not material here, the Board ordered Local 223 to cease and desist from the conduct that had been found to violate sections 8(b) (4) (i) and (ii)(B). The Board’s order is challenged here to the extent that it commands Local 223 to cease and desist from “ [maintaining, enforcing, or giving effect to article II, section 2, or article VIII, section 2, of the collective-bargaining agreement entered into by [Local 223] and Gelfand insofar as these clauses are applied to prohibit use of nonunion label products.” 11

II. SCOPE OF SECTION 8(e) AND THE APPLICABLE CASE LAW

The language of section 8(e) of the NLRA is very broad. 12 On its face, it seems to prohibit any

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498 F.2d 687, 162 U.S. App. D.C. 145, 86 L.R.R.M. (BNA) 2308, 1974 U.S. App. LEXIS 8693, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sheet-metal-workers-international-association-local-union-no-223-v-cadc-1974.